An overview of the differences between logistics operations in Europe and Brazil

I recently participated in ILOS International Logistics Europe Mission, where I had the experience of meeting references in logistics operations in Holland and Belgium:

• Port operations: Port of Rotterdam, APL, tri-modal Port of Tilburg and Port of Antwerp;
• Distribution Centers for the European market: Ricoh, UPS, DHL, Samsung, Nike Belgium (Wings), Kuehne&Nagel, Flora Aalsmeer, Jungheinrich;
• Distribution centers for air freight transport at Schiphol airport (Amsterdam): KLM and DB Schenker BU; It is
• Institutions such as: TKI Dinalog and ACN

Figure 1 – Flora Alsmeer distribution center in the Netherlands

Source: ILOS

The visits allowed us to understand the way of thinking of logistics managers in Europe and the differences in relation to the way we Brazilians act.

Europeans, and especially the Netherlands, as it is a country that depends on trade negotiations, use the region's multimodality in a well-orchestrated way. The schedules for ferries, ships, railroads and road transport are controlled so that there is no dead time and waiting times for the most restrictive modes, which they call “synchro-modality”.

Logistics is a key part of the performance of the Dutch economy and, therefore, government, private companies and universities go hand in hand to ensure that this orchestra is all in the same rhythm. There is clearly a vision of partnership, of exchanging knowledge.

We noticed that the managers of the companies visited did not feel uncomfortable in answering our questions regarding numbers and details of the operation. There is no apparent concern about sharing information with the competition. They understand that everyone stands to gain when they exchange knowledge.

In the European view, the government is responsible for providing the infrastructure and the private sector is the manager. The port, rail and waterway terminals are managed by private companies and they understand that this way they can be more efficient. Companies and associations bridge the gap between government and business.

Dinalog, for example, is a private company, supported mainly by public resources to be the project manager, with the objective of developing the necessary infrastructure to satisfactorily meet the region's demand. ACN, the association of Dutch air cargo companies, develops the industry through technology and education projects involving companies operating at Schiphol airport and regional partners.

In my view, the main differential of their operation in relation to Brazilian practices is in the information. Even when advanced and automated systems are not used, information about the process is recorded and controlled. Reports are generated and data is processed to ensure continuous improvement of the operation and that there is no waste.

A characteristic of the operation of distribution centers and “transit point”s and “cross docking”s that also called my attention, both in Holland and in Belgium, is the occupation of warehouses. They are built for medium to long term future demand. With occupancy far from the maximum, the handling and addressing of the products are easier and result in fewer failures. In places where the land is better positioned and, consequently, more expensive, there is strong investment in technology for vertical storage and addressing and picking/sorting of products.

From the perspective of technology, I mention some observations that impressed me the most:

• Warehouse with stacker cranes over 40m high;
• Picking operations that use Google Glasses to reduce the number of operator movements and error rate;
• Customer inventory control by Ricoh to streamline the distribution operation;
• System developed by Dinalog for composition of load in idle vehicles between Dutch companies from different sectors;
• Development of new technologies to reduce costs and operating time, such as the machine that cuts the boxes used to distribute products by Samsung, etc.

Figure 2 – Port of Rotterdam, in the Netherlands

Source: Port of Rotterdam

However, the icing on the cake is the port operation of Rotterdam: several terminals operated by different companies in a synchronized way, including the operation of other ports such as Tilburg, with high investment in technology.

We had the opportunity to visit a 100% automated terminal. Operators are miles away and monitor the operation through cameras only to act in case of any unexpected breakdown. From the moment the ship is berthed and the first container is positioned, all remaining loading is carried out by robots, including the collection of containers from the storage area and their allocation inside the ship by porter trucks. This way, the process is stable without variability by time or productivity, differential for the “synchro-modality” I mentioned at the beginning of the post.

Without a doubt, the experience of getting to know the workings of European companies and operators was quite enriching. I could make a few more posts with my observations, commenting on sustainability and how European culture influences the operation, for example, but I still wouldn't be able to convey the feeling of being in touch with the reality of the continent personally.

If you work with logistics and have the opportunity, it's really worth getting to know the European operations live.

References:

Europe International Logistics Mission